Accounting entries for the receipt of loan subsidy income
1, if the financial subsidy, it is included in the non-operating income account. Specific accounting treatment is:
Borrow: bank deposits
Credit: non-operating income
2, if it is a business-to-business loan discounts, it is included in the financial expenses account. Specific accounts are:
Borrow: bank deposits
Credit: finance costs
What is non-operating income?
Non-operating income refers to a variety of income that is not directly related to the production and operation activities of the enterprise. It mainly includes: gains on disposal of non-current assets, gains on exchange of non-monetary assets, gains on sale of intangible assets, gains on debt restructuring, gains and losses on business combinations, gains on inventory; the amount payable that really can't be paid due to creditors, government grants, education surcharge refunds, income from penalties, and profits from donations.
What is financial expense?
Financial expenses are the costs incurred by the enterprise to raise the funds needed for production and operation, etc.. Mainly include:
(1) interest expense, refers to the enterprise short-term borrowing interest, long-term borrowing interest, interest on notes payable, discounted interest on notes, interest on bonds payable, long-term interest payable on the introduction of foreign equipment and other interest expenses (in addition to capitalized interest) minus bank deposits, etc., the net amount of interest income.
(2) Exchange loss refers to the difference between the bank's buying and selling price and the exchange rate used for bookkeeping purposes arising from the enterprise's settlement of foreign exchange sales or purchases from the bank, as well as the difference between the bookkeeping RMB amount and the original bookkeeping RMB amount at the end of the month, quarter, or year, when the closing foreign currency balances of various foreign currency accounts are converted to RMB in accordance with the specified exchange rate at the end of the period, and so on.
(3) Relevant handling fees refer to the handling fees to be paid for the issuance of bonds, bank charges for the issuance of bills of exchange, handling fees for the transfer of foreign exchange, etc., but do not include the handling fees to be paid for the issuance of shares, etc.
(4) Other financial expenses, such as finance lease costs incurred for finance leased fixed assets.